LONDON (ICIS)--Prices and demand for polypropylene (PP) and polyethylene (PE) have remained largely flat in the week that the Turkish lira fell to a new record low against the US dollar, sources said on Thursday.
The Hurriyet Daily News website reported the lira at 3.11 against the US dollar on Thursday, before strengthening to 3.09 later in the day.
Sources in the PP and PE markets said the drop will likely add to the already flat demand seen in the Turkish market since the failed coup attempt in July.
Traders paying for imported material in US dollars could struggle to resell these volumes to customers who purchase in lira as they will be getting less value for money.
Demand for exports of finished goods is also not very strong in Turkey, meaning buyers and converters may be able to hold off buying raw materials while they wait for signs of an improvement in the currency.
As a result, prices have been mostly stable since early October, with done deals falling within a narrow range.
Players in the market will now be waiting for offers for November business to emerge as they do not expect much change for the rest of October. They will also be waiting to see if there is any impact on market sentiment during or after the K Fair, which takes place between 19-26 October in Dusseldorf, Germany.